The substitution effect occurs when consumers and businesses shift their consumption and sourcing patterns to adapt to higher prices on tariffed goods, such as by purchasing domestically produced alternatives or imports from countries not subject to the tariffs.

Authors

• Person: Ramu Thiagarajan, Jennifer Bender, Michael Metcalfe Organization: State Street
  The price of protectionism: Understanding the economic tradeoffs of ...

Sources

• The price of protectionism: Understanding the economic tradeoffs of ... www.statestreet.com Ramu Thiagarajan, Jennifer Bender, Michael Metcalfe · State Street via serper

Referenced by nodes (1)

• tariff concept